Ather Energy Limited - IPO

1. Other than the batteries that its manufacture in-house, the company relies on its suppliers to provide all other EV components used in assembling its E2Ws in-house. Any loss of key suppliers, or any failures or refusal by them to supply such components to it could cause business disruptions.

2. The company has received some customer complaints pertaining to its products in the past. There is no assurance that the company will not receive similar complaints in the future or that its will be able to address such customer complaints in a timely manner or at all.

3. The company has incurred losses since incorporation. The company had stagnant revenue growth in Fiscal Year 2024 and loss before tax of Rs. 5,779 million and Rs. 10,597 million in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. There is no assurance that the company will be cost effective in its operations or achieve profitability in the future.

4. The company has incurred negative cash flows from operations continuously since incorporation. The company had net cash used in operating activities of Rs. 7,171 million and Rs. 2,676 million in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. Negative cash flows may adversely impact its liquidity and prospects.

5. Its limited operating history makes evaluating the company business and future prospects difficult and its historical performance may not be indicative of future performance.

6. Its future growth is dependent on the demand for and adoption of electric two-wheelers. According to the CRISIL Report, the company had a 10.7% and 11.5% market share of the Indian E2W market in the nine months ended December 31, 2024 and Fiscal Year 2024, respectively. If the market does not develop as the company expect, or develops at a speed that is slower than anticipated, its business, prospects, financial condition and operating results will be affected.

7. The lithium-ion cells used in its electric two-wheelers' battery packs could catch on fire or vent smoke even if properly manufactured, managed or controlled. Such instances could subject it to adverse publicity, which may impact the company brand, business, prospects, financial condition and results of operations.

8. Any disruptions in the availability and any changes in the pricing and quality of lithium-ion cells could cause significant disruptions to and adversely impact its business operations.

9. The company relies on imports from certain countries, such as China, and supplies of such imports may be disrupted by changes in government regulations or policies, deterioration in economic conditions or escalation of trade tensions.

10. There are outstanding legal proceedings against the Company, certain of its Promoters and the company Directors. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, cash flows and reputation.